More Images

Marion jobless rate inches up as labor force grows

Warehouse workers and material handlers like Michael Caldwell, feeds excess black plastic into a shredder at Donarra Extrusions Thursday afternoon in Ocala. The company has doubled their work force over the past year and make plastic products to be used in boats, port-a-potties, bathroom stalls, cutting boards shelving and all products used in thermal forming. The company has been operating since March 2011.

Published: Friday, June 15, 2012 at 10:28 a.m.

Last Modified: Friday, June 15, 2012 at 5:42 p.m.

Marion County's unemployment rate crept up a hair during May, reaching 9.8 percent, compared with 9.7 percent the month before. Still, that's an improvement over the 11.9 percent unemployment rate in May 2011.

Contributing to the slight bump was an increase in the county's labor force, which grew to 132,926 from 131,041 in April, according to the Florida Department of Economic Opportunity.

The number of people who were employed during May was 119,906, up from 118,281 during April and 117,779 during May 2011.

Florida's seasonally adjusted unemployment rate fell to 8.6 percent in May, down from 8.7 percent in April 2012 and 10.6 percent May 2011.

Flagler and Hendry counties had the highest unemployment rate, with 11.7 percent each in May, followed by Hernando and St. Lucie counties (10.9 percent each). Monroe County, at 4.9 percent, had the state's lowest unemployment rate.

Bob Walther is president of Wal-Staf Personnel Services, which is a job placement business with offices in Ocala, Gainesville and Lake City.

"We've seen this year being better than last year, but it's not something to get excited about. It's a slow, long process," Walther warned.

Instead, Walther said most of his business customers looking to hire more workers are doing so only to cover their immediate demand for new orders.

"Let's hire up so we're ready for the expansion. I'm not hearing that," he said.

"The good news (with the May unemployment data in Marion County) is that more people are working (than in April). The bad news is more people are out of work," Walther said.

Walther said contributing to the growing labor force was that unemployment compensation was ending for many out-of-work residents, now forced to look for work again.

He warned that the labor force would soon swell when high school students finish school and join the job market.

Meanwhile, people are working longer and staying healthier longer, he said, leaving fewer job openings for new workers.

"I just don't see anything going on out there that says be optimistic about the job market," he said.

The construction sector remains the hardest hit sector locally, although the number of construction jobs in May increased by 100 compared to April 2011. But compared to May 2011, there were still 400 fewer construction jobs, or a 6.9 percent decline.

One of the few rays of hope is coming from a modestly improving Marion County manufacturing sector, which has seen a 200-job growth since May 2011, or about 3.1 percent.

Walther said much of that manufacturing growth was due to small, innovative startup companies that are flexible and willing to fill niche markets.

One such new company is Donarra Extrusions in Ocala, which manufactures plastic sheets. Those sheets are sold to other companies, which then mold the plastic to configurations they need.

The 1½-year-old business began with seven employees and now has 21, according to its operations and human resources manager, Ernie Becker.

The plant operates five days per week, 24 hours per day and typically offers its employees more than a dozen hours of overtime each week. The company will soon go to a seven-day-a-week operation.

Becker said much of the success of the business is its willingness to meet customer orders, regardless of size or unique requirements.

Meeting those demands also helps build customer loyalty, which hopefully will remain when the economy improves or when the customer needs larger orders in the future, he said.

"You have to have a niche to be successful today," Becker said.

Becker hired two additional employees this week.

Walther said the key to either finding a job or starting a business is flexibility.

"You do things you never thought you would do because you have to survive," he said.

<p>Marion County's unemployment rate crept up a hair during May, reaching 9.8 percent, compared with 9.7 percent the month before. Still, that's an improvement over the 11.9 percent unemployment rate in May 2011.</p><p>Contributing to the slight bump was an increase in the county's labor force, which grew to 132,926 from 131,041 in April, according to the Florida Department of Economic Opportunity.</p><p>The number of people who were employed during May was 119,906, up from 118,281 during April and 117,779 during May 2011.</p><p>Florida's seasonally adjusted unemployment rate fell to 8.6 percent in May, down from 8.7 percent in April 2012 and 10.6 percent May 2011.</p><p>Flagler and Hendry counties had the highest unemployment rate, with 11.7 percent each in May, followed by Hernando and St. Lucie counties (10.9 percent each). Monroe County, at 4.9 percent, had the state's lowest unemployment rate.</p><p>Bob Walther is president of Wal-Staf Personnel Services, which is a job placement business with offices in Ocala, Gainesville and Lake City.</p><p>"We've seen this year being better than last year, but it's not something to get excited about. It's a slow, long process," Walther warned.</p><p>"There's nothing that's really changed that's told employers be confident," he said. "I'm not hearing a lot of optimism."</p><p>Instead, Walther said most of his business customers looking to hire more workers are doing so only to cover their immediate demand for new orders.</p><p>"Let's hire up so we're ready for the expansion. I'm not hearing that," he said.</p><p>"The good news (with the May unemployment data in Marion County) is that more people are working (than in April). The bad news is more people are out of work," Walther said.</p><p>Walther said contributing to the growing labor force was that unemployment compensation was ending for many out-of-work residents, now forced to look for work again.</p><p>He warned that the labor force would soon swell when high school students finish school and join the job market.</p><p>Meanwhile, people are working longer and staying healthier longer, he said, leaving fewer job openings for new workers.</p><p>"I just don't see anything going on out there that says be optimistic about the job market," he said.</p><p>The construction sector remains the hardest hit sector locally, although the number of construction jobs in May increased by 100 compared to April 2011. But compared to May 2011, there were still 400 fewer construction jobs, or a 6.9 percent decline.</p><p>One of the few rays of hope is coming from a modestly improving Marion County manufacturing sector, which has seen a 200-job growth since May 2011, or about 3.1 percent.</p><p>Walther said much of that manufacturing growth was due to small, innovative startup companies that are flexible and willing to fill niche markets.</p><p>One such new company is Donarra Extrusions in Ocala, which manufactures plastic sheets. Those sheets are sold to other companies, which then mold the plastic to configurations they need.</p><p>The 1½-year-old business began with seven employees and now has 21, according to its operations and human resources manager, Ernie Becker.</p><p>The plant operates five days per week, 24 hours per day and typically offers its employees more than a dozen hours of overtime each week. The company will soon go to a seven-day-a-week operation.</p><p>Becker said much of the success of the business is its willingness to meet customer orders, regardless of size or unique requirements.</p><p>Meeting those demands also helps build customer loyalty, which hopefully will remain when the economy improves or when the customer needs larger orders in the future, he said.</p><p>"You have to have a niche to be successful today," Becker said.</p><p>Becker hired two additional employees this week.</p><p>Walther said the key to either finding a job or starting a business is flexibility.</p><p>"You do things you never thought you would do because you have to survive," he said.</p><p><i>Contact Fred Hiers at 867-4157 or fred.hiers@starbanner.com.</i></p>